Inflation rate in December at 14.6 percent
In Turkey, inflation increased further at the end of 2020 despite drastic interest rate hikes by the central bank and reached its highest level in over a year. In December, the inflation rate rose to 14.6 percent, as the national statistics agency announced on Monday. This is the highest rate since August 2019. In November inflation was 14.0 percent and in October it was 11.9 percent.
In December the Turkish central bank reacted to the rise in inflation with a significant interest rate hike. Under the new central bank president Naci Agbal, it raised the key interest rate from 15 percent to 17 percent after the interest rate had already been increased drastically in November. Before that, the Turkish President Recep Tayyip Erdogan had repeatedly spoken out against rate hikes. It was only after a massive rise in inflation and a decline in the rate of the Turkish lira that Erdogan had apparently given in.
